3. Are your financial statements prepared on the accrual basis?

Yes, I know and appreciate the accuracy of accrual accounting Yes, I believe they are I think so, It says so on my financials No, we use cash-basis financials What are accrual financials?

4. How consistent is your gross margin percentage on a monthly basis?

Very consistent Somewhat consistent It fluctuates Not sure I don’t receive this information – it’s not relevant for my business

5. Do you review your financial statements monthly with your advisor?

Yes, I review them in detail with my advisor and receive great insight Yes, but my advisor speaks in accounting jargon that I have trouble understanding Sometimes, but I don’t have confidence my advisor understands our business and industry No, I review them by myself and go it alone No, I don’t understand my financials and only look at the bottom line

6. Do you receive internal cash flow projections?

Yes, I receive accurate weekly cash projections for the next 90 days Yes, but they’re often inaccurate – it’s difficult to estimate cash flow in our business Sometimes, if I ask for them, but they’re not very helpful No, I rely on my line of credit or keep a large cash reserve on hand for “the unexpected” Projections?! I have to watch my cash balance every day and have little or no reserve!

7. Do you receive monthly reporting on what you will owe the IRS at the end of the year?

Yes, I receive monthly reporting that I share with my CPA for tax planning No, I get this information in the last quarter of the year to share with my CPA No, every year is a mad scramble to get this to my CPA by the end of the year My CPA complains I get it to him late, but we’re too busy running our business My CPA will figure this out and tell me how much I owe before the return is due

8. Do you have a weekly financial scorecard with your most important financial indicators?

Yes, and it is invaluable in helping me monitor and manage my business I get some weekly information and monthly indicators that are helpful I get a lot of reports and information, but, frankly, it’s a little overwhelming No, but I know my business intuitively and how I’m doing What is a scorecard and what would I track?

9. Do you have a strategic business plan that you prepare annually?

Yes, I have a business plan that we update on a monthly or quarterly basis Yes, we have a business plan we update on an annual basis Yes, we have a business plan, but it’s been over a year since being updated Not really – we have one we prepared several years ago, but it’s out of date No, we don’t have a business plan

10. Are you convinced you do not have any financial theft or fraud?

Yes, I have solid internal controls and people checking each other’s work Mostly, we have controls and I would know quickly if someone were stealing I think I would catch anything large – I’m on top of things and review our bank statements and disbursements I’m good – my accountant has been with me for years and I trust them I have no idea, but I hear a lot about this and it really worries me